the popular thing wasn't so much directed towards you but the other people that don't give reasons for not liking iPods.
It does cost that much more to up the HD space. Flash memory is complicated.
Heres a VERY brief description of how it works.
Memory is stored in binary, everything is a 0 or a 1, so open or close, high or low, etc.
Thats a NAND gate. Its what most flash memory is made of. Basically that little picture gets drawn into a chip and can be used to hold a 0 or a 1, so 1 bit. There are 8,589,934,592 buts in a gigabyte. So imagine drawing that picture 256 billion times on an area the size of a quarter. Think thats cheap or easy to do?